NDB money wars exposed
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NDB CHIEF EXECUTIVE OFFICERS: Lorato Morapedi
The National Development Bank (NDB) is trading on thin ice as profits are on a downward spiral and recent indications suggest that they will register a loss for the first time. The Development Bank stands at P320 million in arrears, the main factor that has pit management against staff.
WeekendPost is in possession of documents that illustrate disagreements between management and staff concerning the financial standing and future of the bank. Whistle blowers at the bank have revealed that the 2014/15 financial report which is expected to register a loss of the bank for the first time is still kept under the carpet.
“The Bank is anticipating an operational loss due to high impairments and provision thereof, an interest rate constrained environment, leading to reduced liquidity and this scenario is not only peculiar to NDB,” NDB Head of Branding, Marketing and Communications Harry Marks said.
It is understood that while the financials for 2014 are yet to be approved – the bank is anticipating an operational loss.
Documents passed to this publication, confirm the anticipated loss – the financial position of the bank is in a disturbing state and this is exacerbated by the high level of non-performing accounts.
The bank has an unprecedented number of non-performing accounts. The total NDB portfolio is P1, 769, 398, 215.00 with total arrears at P319, 035 431.00,” states a letter sent to Minister of Finance and Development Planning Kenneth Matambo dated 16 February 2015 which has been passed to this publication.
“The Bank is constantly borrowing from other commercial Banks which it competes with to lend to the general public. These commercial banks lend NDB funds at unfavourable rates and very onerous conditions as they have taken the view that NDB is a high credit risk – especially because of its management inability to curb the bad debt situation that is spiraling out of control,” the letter reads.
It is understood that the commercial banks often require additional surety or guarantee from government because of the shaky ground on which the bank finances are standing. In another letter dated 12 December 2014 from the National Development bank Employees Union (NDBEU) to the board chairperson, the bank employees are concerned about the bank’s debt.
“To date, and as is the case every year, management is struggling to persuade the external auditors to endorse the annual accounts. As usual, management and staff are called upon to cook up some gymnastic explanation with regard to its bad debt provisioning methodology, and generally account for how it has factored the impact of its substantial uncollectable debt. Such a situation cannot be allowed to persist as an annual ritual, year in and year out.”
According to the information, the bank’s financial position has also been negatively impacted by the decision on implementation of several projects (refurbishment, rebranding etc), all done within a relative short time.
The Some employees state that prioritization on project implementation, employees’ state, was not at all well carried out despite very restrained resources. Refurbishments, sources say were done at the tune of 85 million of which P6.5 million was splashed at the rented Palapye branch.
“Naturally therefore certain projects have now been stopped midway. The office refurbishment and rebranding project has been stalled for example, which presents a very embarrassing scenario given that management has been advertising extensively to the general public that they will now be seeing a brand new bank,” NDBEU said through their letter to bank board Chairperson Mr. L. Seitei who has served for more than 10 years in the position.
This publication is informed that the bank is currently faced with challenges in making disbursements at adequate levels because there are insufficient funds for loan disbursements. This, it is believed, has resulted in delayed service delivery and is affecting the credibility of the bank. “Yet there is no formal or open communication to staff with regard to details of the liquidity situation and what they should expect, or what is expected of them.”
According to Marks, overall the banking sector has been experiencing a decline in profitability due to the aftershocks of the 2008 world economic meltdown and partly due to a combination of the factors stated. In addition NDB’s development mandate focuses on start-ups and sectors that are susceptible to diseases and drought such as agriculture, he added. NDB’s primary role is to provide Agricultural loans to farmers and/or potential farmers.
Although the bank said to be in financial trouble, the NDB spokesperson explained that the bank has been performing well since 2010; with total assets increasing by 60% from P1 billion to P1.6 billion in 2014 as a result of an increase in net loans and advances.
However he conceded that the bank’s financial performance has been declining: “the bank has also been profitable during this period (since 2010) with profit declining yearly at P57.8million, P48.6million, P40.5 million, and P45.8million in 2010, 2011, 2012 and 2013 respectively.
NDB employees have previously warned the bank management that a downward spiral in performance would ultimately lead the bank to a position that is not favourable for stakeholders. Some stakeholders are already aware that the bank is facing very serious liquidity problems and is currently unable to pay out loan funds – which is the core mandate – even to applicants whose loans have been approved.
“Loan files that are awaiting disbursement of funds are said to have been stacked up and deliberately delayed as an unofficial internal policy so as to manage the financial crisis. Seasonal agricultural loans, especially those of significant amounts, which should have long been disbursed to farmers for the current rain season, are still pending disbursement. All the while customers have been kept in the dark with regard to what is happening with the processing of their loans,” one of the stakeholders said.
The bank is predicting a loss of an estimated P87 million – which is attributed to lack of financial management. The bank is said to be not performing to its optimum best – in the past five years it was making profits of around P48 million.
When contacted for comment NDBEU President, Gilbert Watshipi was reluctant to share information on the alleged financial crises at the bank. He refused to shed light on any information saying it is internal and insisted that bank management and Finance minister Matambo are in talks with staff to address the challenges faced by the bank. “That issue is internal – and besides we are not allowed to speak to the media,” Watshipi pointed out.
Meanwhile Member of Parliament for Mabule/Goodhope, James Mathokgwane is expected to rally parliament to move a motion calling for a commission of inquiry on alleged maladministration, financial mismanagement, corruption and nepotism at NDB in July sitting.
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Local tennis team upbeat ahead of Billie Jean King cup
With almost two weeks until the 2023 Billie Jean King Cup, which will be staged in Kenya from June 12-17, 2023, the Botswana Tennis Association (BTA) ladies’ team coach, Ernest Seleke, is optimistic about reaching greater heights.
Billie Jean King Cup, or the BJK Cup, is a premier international team competition in women’s tennis, launched as the Federation Cup to celebrate the 50th anniversary of the International Tennis Federation (ITF). The BJK Cup is the world’s largest annual women’s international team sports competition in terms of the number of nations that compete.
The finals will feature 12 teams (Botswana, Burundi, Ghana, Kenya, Seychelles, Morocco, Namibia, Nigeria, Tunisia, Mauritius, Zimbabwe, and the Democratic Republic of Congo) competing in the four round-robin groups of three. The four group winners will qualify for the semifinals, and the 2023 Billie Jean King Cup will be crowned after the completion of the knockout phase.
Closer to home, the BW Tennis team is comprised of Thato Madikwe, Leungo Monnayoo, Chelsea Chakanyuka, and Kelebogile Monnayoo. However, according to Seleke, they have not assembled the team yet as some of the players are still engaged.
“At the moment, we are depending on the players and their respective coaches in terms of training. However, I will meet up with Botswana-based players in the coming week, while the United States of America (USA) based player Madikwe will probably meet us in Kenya. Furthermore, Ekua Youri and Naledi Raguin, who are based in Spain and France respectively, will not be joining us as they will be writing their examinations,” said Seleke.
Seleke further highlighted the significance of this competition and how competitive it is. “It is a massive platform for our players to showcase their talent in tennis, and it is very competitive as countries target to get promoted to the world categories where they get to face big nations such as Spain, France, USA, and Italy. Though we are going to this tournament as underdogs because it is our second time participating, I’m confident that the girls will put in a good showing and emerge with results despite the odds,” highlighted Seleke.
Quizzed about their debut performance at the BJK Cup, he said, “I think our performance was fair considering the fact that we were newbies. We came third in our group after losing to North Macedonia and South Africa. We went on to beat Uganda, then Kenya in the playoffs. Unfortunately, we couldn’t play Burundi due to heavy rainfall and settled for the position 9/10,” he said.
For her part, team representative Leungo Monnayoo said they are working hard as they aim to do well at the tourney. “The preparations for the tourney have long begun because we practice each and every day. We want to do well, hence we need to be motivated. Furthermore, I believe in my team as we have set ourselves a big target of coming home with the trophy,” she said.
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Pep Stores donates sanitary towels to Popagano JSS
The Guidance and Counseling unit at Popagano Junior Secondary School received a donation of 790 sanitary towels from Pep stores on Thursday.
When presenting the donation, Mareledi Thebeng, the Dinokaneng Area Manager, highlighted their belief in giving back to the community, as their existence depends on the communities they serve. Thebeng pointed out that research indicates one in four girls miss school every day due to the lack of basic necessities like sanitary towels. Therefore, as a company, they strive to assist in alleviating this situation. She expressed hope that this donation would help ensure uninterrupted learning for girls.
Upon receiving the donation on behalf of the students, Charity Sambire, the President of the Student Representative Council, expressed her gratitude. Sambire specifically thanked Pep Store for their generous gift, speaking on behalf of the students, especially the girl child.
She conveyed their sincere appreciation for Pep Store’s compassion and quoted the adage, “Blessed is the hand that gives.” Sambire expressed the students’ hope for Pep Stores’ prosperity, enabling them to continue supporting the students. As a gesture of gratitude, the students pledged to excel academically.
During her speech, Motlalepula Madome, the Senior Teacher in Guidance and Counseling, highlighted that many students at the school come from disadvantaged backgrounds where parents struggle to provide basic necessities. Consequently, some students miss school when they experience menstruation due to this lack.
Madome emphasized the significance of the donation in preventing the girl child from missing lessons and its potential to improve the school’s overall results. She expressed the school’s gratitude and expressed a desire for continued support from Pep Stores.
Popagano Junior Secondary School, situated in the Okavango District, holds the second position academically in the North West region. Despite its location, the school has been dedicated to achieving excellence since 2017
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Botswana misses out critical PAP committee meeting
The Pan African Parliament (PAP) committee on gender, family, youth and people with disability in its sitting considered, adopted and recommended to the plenary session the preliminary report on the framework for the model law on gender equality.
According to the last week’s media release from PAP which is sitting with its various committees until June 2nd, the committee is following up the PAP initiative to draw up a model law on gender equality to enable national governments to harmonize, modernize and standardize their legislations to address local needs is set to be discussed in Plenary.
However, what is concerning is the fact that Botswana which is a member state missed the deliberations. Kgosi Mosadi Seboko who sat in the committee representing Botswana has since been ejected by parliament and this is a huge blow for a nation that is still battling equity and gender balance.
“Although PAP has no legislative powers it makes model laws for member states to adopt. PAP also develops protocols to be ratified by countries. The input of countries at Committee state is extremely critical. It now means the voice of Botswana is missing the discussions leading up to development of protocols or model laws,” said one of Botswana’s representative at PAP Dr. Kesitegile Gobotswang who is attending the current session.
While Botswana is missing, the committee meeting took place on the sidelines of the Sixth PAP second ordinary Session being held under the African Union Theme of the Year for 2023, “The Year of AfCFTA: Accelerating the Implementation of the African Continental Free Trade Area” in Midrand, South Africa and will run up to 2 June 2023. Chairperson of the Committee, Hon Mariam Dao-Gabala expressed satisfaction with preliminary processes undertaken so far towards the formulation of the Model Law,” a release from the PAP website reads.
“The law should be suitable to all countries whatever the predominant culture or religion is. The aim is to give an opportunity to women to participate in the economic, political and social development of the continent. Women are not well positioned and face a lot of obstacles. We are introducing the idea of equity in the Law because we cannot talk about equality without equity,” said Hon Mariam Dao-Gabala in the press statement.
The release has stated that among issues to be covered by the Model Law is the migratory movements of women. The Committee proffered that this has to be addressed at the continental level to ensure that migrant women enjoy all their rights and live with dignity in their destination country. The members of the Gender Committee undertook consultations to consolidate the contributions of the various stakeholders that will be the logical framework format for the Model Law.